Colorado Real Estate Continuing Education - COLORADO Approved School: RealEstateCE.com
CO 4.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud Course Syllabus
4.0 Elective Hours
We are fortunate today that most mortgage lenders are honest, ethical, well-intentioned people committed to doing a good job for their clients. Most are licensed, bonded, subscribe to a code of ethics, and are members of a national trade association. State departments of financial institutions keep a close watch on licensed mortgage brokers. Federal regulators audit most large institutions to assure compliance with the law.
The Home Ownership and Equity Protection Act amended the Truth in Lending Act. HOEPA requires creditors to disclose and comply with limitations in home-equity loan rates and fees. Through Regulation Z, the Federal Reserve Board is authorized to implement regulations that promote informed consumer credit use and prohibit predatory mortgage lending.
Generally, a loan is predatory if the interest rate is anywhere from 6 to 10 points over Treasury Securities for first mortgages and 9 points for second mortgages. In some states, you cannot refinance unless there is a tangible net benefit.
Unfortunately, there are some elements of our society that prey on the unwary or uninformed. This course hopes to expose some of their tactics and educate real estate professionals and the consumer on what to watch for when borrowing money to buy or refinance residential property.